Turn at the G7. The finance ministers of the seven largest economies on the planet have approved the plan which plans to set a ceiling on the price of oil from Russia.
The measure, strongly desired by the United States, aims to ease pressure on the energy market, but also to hit Moscow's finances, reducing its revenues.
Oil price ceiling: the announcement of the G7
“On the roof of the oil price, we want to build a broad coalition, beyond the G7, we want to convince all EU countries and beyond,” said German Finance Minister Christian Lindner, who holds the presidency of the G7.
"We confirm our common political intention to finalize and implement a global ban on services enabling the maritime transportation of Russian oil and petroleum products globally,” the ministers said in a statement. “Provision of such services will only be permitted if the oil will be purchased at the fixed price or below this price (“price cap”) determined by a broad coalition of countries that adhere to the ceiling and implement it”, continues the note.
The intention of the ministers is therefore to implement the ceiling in line with the timing of the EU sanctions on Russian oil, the departure of which is scheduled for December 5th.
For the moment, the ministers have not yet set the boundaries of the ceiling, which will be established by the entire coalition that will apply it, on the basis of technical inputs. "The price will be publicly communicated in a clear and transparent way", conclude the ministers.
“The ceiling on the price of Russian oil is one of more powerful tools to fight inflationthe US Treasury secretary commented, Janet Yellen. With this decision, "the G7 has taken a fundamental step towards achieving our double goal of lowering pressures on energy prices and denying Putin the revenues to finance his brutal war in Ukraine", reads a statement from the department of the German Treasury, according to which with the oil price cap, "the G7 will significantly reduce Russia's main source of financing for its illegal war".
von der Leyen: "After oil, it's up to gas"
“I am of the firm belief that it's time for a ceiling on the price of gas from Russian gas pipelines to Europe”, said the president of the EU commission, Ursula von der Leyen, in a speech on the sidelines of a meeting of German conservative parties in Murnau in Bavaria. The question should be addressed during the Council of Energy Ministers scheduled for Friday 9 September.
The reply from Moscow was also immediate in this case. "If hostile countries cap prices on Russian energy resources, Moscow will supply oil only to countries that adjust to market conditions," Kremlin spokesman Dmitry Peskov said, quoted by Tass. And Gazprom won't reopen gas supplies to North Stream.
